Motor Trade insurance explained! Traders Insurance also referred to as Road Risk Insurance protects someone who deals with cars in their job or business.

Traders insurance, also called Motor Trade insurance, can sometimes be a difficult insurance product to get your head around, especially if you are new to the industry and it’s your first time getting a Traders insurance quote. New motor traders can often be unsure of what they need to get insured and what they might also want to have included on their policy.

What Is Traders Insurance?

A Motor Trade insurance policy is an insurance product that protects someone who deals with cars as their profession or business; this can be as a full-time job or on a part-time basis. It doesn’t matter if you are a sole trader or if you’re a Limited Company and hire employees, you will need Traders insurance. A motor trader can be anyone from a valeter to a mobile mechanic and even someone selling cars on the side to support their main income. The main aim of Motor Traders insurance is to make sure you are legally covered, and the minimum insurance policy required for this would be a Road Risk Motor Trade policy with Third Party Only cover.

Who Needs Traders insurance?

If you own a motor trade business or are a sole trader in the motor trade, you will need to have a Motor Trade insurance policy if you want to drive the cars you come into contact with as part of your work.

Do I Need Traders Insurance If I Work For A Motor Trader?

If you are employed by a motor trader or a motor trade business, you do not need a specific insurance policy for yourself. If you need to drive cars as part of your work duties then you will need to be a Named Driver on the business/owner’s Motor Trade insurance policy.

What Do I Need To Be Insured For?

Even if you don’t intend to drive on UK roads, there are still many things you may want to have insured. For mechanics or tyre fitters, this could be Product Liability insurance, which would protect you in the event that a product you fit is faulty and causes harm to the vehicle. A mechanic or someone in vehicle sales may also want to take out Public Liability which would protect the business/trader if a customer is harmed at their premises. If you hire any employees you would almost certainly be required by law to take out Employers’ Liability insurance. Depending on the size of your motor trade business, there might be certain pieces of equipment you would like insured as well, to make sure that if something happened to them, you could get them replaced without having to pay out of your own pocket, and could keep your business running.

Road Risk Motor Trade Insurance or Combined Motor Trade Insurance?

There are two types of Motor Trade insurance available:

Road Risk Only Motor Trade insurance – The basic policy which covers you to drive on UK roads with a choice of Third Party, Third Party, Fire & Theft or Comprehensive cover levels available. Liability cover can also be added to this policy.

Combined Motor Trade insurance – A policy designed for traders with a more complex business and a dedicated premises. This policy includes the trimmings of a Road Risk policy, but can also cover the building, business interruption, tools, machinery and more.

Ready to get a Motor Traders insurance quote? Then you can call Think Insurance on 0800 221 8077 and a member of our specialist Motor Trade insurance team will help design a policy for your motor trade business. You can also click ‘Get a Quote’ below and we’ll ring you.